Securitisation in Luxembourg

With more than 1,000 securitisation vehicles and thousands of related compartments, the Luxembourg securitisation market is well established and continuing to grow.

A hub in Europe for securitisation and structured finance transactions, Luxembourg has a pragmatic and secure legal and tax regime which allows the securitisation of a virtually unlimited range of risks, through different forms of securitisation vehicles with almost full tax neutrality, creating an attractive market for issuers, originators and investors.

Luxembourg's securitisation regime has a 20-year history of development and refinement. Beginning in 2004 with a statutory framework created by the Luxembourg Securitisation Law, as amended from time to time, and supplemented by the regulatory guidance issued by the Luxembourg Financial Sector Supervisory Authority (the CSSF), securitisation vehicles are now widely used to cover a range of activities including regulated, continuously offered securities to the public, institutional capital raising and private, unregulated financial instruments-issuing investment vehicles.

Amendments to the Securitisation Law in Luxembourg in 2022 brought further flexibility to the securitisation regime, by allowing the use of additional types of vehicles, including the popular Luxembourg limited partnerships and opening the market to CDOs/CLOs through the permission of active management of debt securities.

While many are familiar with the concept of securitisation, our experienced Luxembourg team of legal and tax advisers will ensure the transaction runs smoothly.

Securitisation services

• Structuring Luxembourg securitisation vehicles (companies and funds) and Luxembourg company law

• Securitisations involving a wide range of asset classes

• Structured finance in Luxembourg securitisation including collateralised loan obligations (CLOs) and commercial mortgage-backed securities (CMBS)

• Advising issuers, sponsors, underwriters, sellers, servicers, financial guarantors, institutional purchasers, and trustees

• Seamless coordination between our tax, finance, regulatory and restructuring specialist teams and close collaboration with trusted service providers

• Assistance with listing in Luxembourg